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The proposed India–UK Free Trade Agreement (FTA) is expected to significantly reduce prices of imported British luxury cars in India

ICICIdirect Research 12 Jun 2026 DISCLAIMER

News: According to media sources, the proposed India–UK Free Trade Agreement (FTA) is expected to significantly reduce prices of imported British luxury cars in India by cutting customs duties on completely built units (CBUs) from 110% to 30% initially, before tapering them further. Brands such as Bentley, Aston Martin, Rolls-Royce, Mini, and Jaguar Land Rover (JLR) could see price reductions ranging from ₹8 lakh on entry models to over ₹3 crore on high-end supercars like the McLaren 750S. However, electric vehicles, hybrids, and hydrogen-powered cars are excluded from these tariff benefits for the first five years.

View: This agreement could reshape India’s premium automobile market by making ultra-luxury British cars more accessible and intensifying competition in the luxury segment. Wealthy buyers may benefit immediately, while brands gain stronger market penetration. However, this is neutral for mass segment players as luxury car segment represents just 1% of total domestic PV sales. This is mildly positive for Tata Motors PV who also has a domestic presence in the luxury car segment through JLR while is neutral for Maruti, M&M and Hyundai Motors

Impact: Neutral

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